Posted on July 5, 2014

Know Your Documents - Part III

Having comprehended the basic documents, here we are at the final few of them all.

No Objection Certificate:

No Objection Certificate or NOC is an important document which claims that the owner has no objection in transferring the ownership of the property to the potential buyer. It also clears the seller’s stance that there are no dues pending. Buying a plot for residential development without checking the NOC would imply that the buyer might never know in case the authorities had other plans for the development of that locality in the future. This might result in issues if the authorities plan to develop commercial structures in that area. Having an NOC also helps to confirm that the land has not been acquired by the municipal authorities as of now. This is a very important document and it is mandatory to have it once the purchase of property is complete. The builder should also be able to give you a copy of the urban land ceiling NOC (if applicable), an environment clearance NOC as well as NOCs from the electricity, water and lift authorities, if there are any.

Occupancy Certificate:

An occupancy certificate is an authorisation issued by a local governing body that a building adheres the stated health and safety standards and can be inhabited and is not encroached upon. It also evidences the compliance of local laws. Occupancy Certificate permits the buyer to move into his/her new apartment and is considered illegal if moved in without it. Mandatory for every residential complex more than five units, the occupancy certificate is processed once the local governing body gets the information, from the owner or buyer stating that the construction is complete. The certificate is issued once the authorities inspect the complex and confirm whether it has been completed adhering to the approved plan. Significantly, Occupancy Certificate is also required when a home buyer applies for Khata. Not possessing the OC, might lead to chances of electricity and water connection being cut off.

Khata Certificate and Khata Extract:

Primarily defined as ‘account’, Khata is required by any person who owns a property under the corresponding local jurisdiction. It is a must document when licensing a property for trade or applying for loan and filing property tax. It is taken as a standard as it contains details like name of owner, size of the building, location of the property and other details. The person enlisted in the khata does not necessarily imply that the person might be the owner of the property. The name signifies the person who is responsible for paying tax for that property. A khata consists of two things: a Khata certificate and a Khata Extract.

Khata Certificate - The Khata certificate is required for property registration in case of a new property and when performing Khata transfer during sale of the property. Khata certificate is considered to be the secondary document of title. The presence of the Khata certificate in addition to the primary documents enforces the proof that the Khata owner or the Khathedar is the owner of the property. This document becomes especially necessary when problems occur in the court of law regarding ownership of the property.

Khata Extract - This document consists of details about the property from the assessment point of view and is based on the assessment register. It also contains details on size of the property, use of the property, be it residential or commercial, the value of the property based on the last assessment, etc.

Registration of Sale Deed:

This is considered to be the most important and a mandatory step while purchasing any property. After the checking of all the necessary documents and payments, the purchased property should be registered at the Sub-Register or the SDM (Sub-District Magistrate) of the area. The sale deed must be duly stamped and registered, which otherwise is considered illegal.

When comparing properties we usually look at location, price and possession date. These are no doubt important parameters for short-listing, however there are many more important things to check before you finalize a deal. When every aspect of the construction is executed by the in-house team, and is not sub-contracted, it results in cleaner and appropriate work.

As the saying goes, “Be Diligent before Becoming a Litigant”. ‘Saran Developers’ too follow the same dictum. Sporting a clean record, precise project completion dates and being able to achieve the home buyers’ trust with spotless legal record, ‘Saran Developers’ have established themselves with high recognition in the real estate industry. One of their projects, ‘Mulberry Woods’ is an elegantly designed apartment complex with seamless blend of sophistication, comfort and style. Saran Developers is specialized in delivering clean property transactions and other related issues to prospective buyers to establish themselves as a trustworthy and transparent organisation.